11/20/2008 @ 1:15PM

Congress' New Commerce Chief

By a vote of 137-22 among Democrats in the House of Representatives Thursday, Rep. Henry Waxman, D-Calif., ousted Rep. John Dingell, D-Mich., as the chairman of the House of Representatives Energy and Commerce Committee.

Dingell, 82, is considered to be an ally of Detroit automakers
General Motors
, Chrysler and
Ford Motor
. The chief executives of the “Big Three” just finished two days of brutal testimony on Capitol Hill, with lawmakers leaning toward not granting the automakers the $25 billion they’re seeking in emergency loans.

Waxman’s victory is a seismic event on Capitol Hill, as he has unseated one of the most powerful members of Congress, who since 1981 has been the top Democrat on the influential Energy and Commerce Committee. But it was not entirely unexpected. Wednesday, the party’s panel that votes on committee chairmanships gave Waxman the nod by a 25-22 vote.

However, it’s also a signal that Democrats are looking for a slate of leaders that is less likely to clash with President-elect Barack Obama and House Speaker Nancy Pelosi, D-Calif., on energy and climate issues.

“A Waxman win changes the character of House Democrats’ views toward coal and cars, the two principal sources of greenhouse gas emissions in the U.S. economy,” says Kevin Book, an energy analyst with
FBR Capital Markets
.

No word yet from Detroit, but the Big Three can’t be thrilled. During the debate over last year’s energy bill, which modified fuel economy standards, Pelosi was forced to work out a compromise with Dingell to pass the bill. Dingell’s critics have often claimed that if he weren’t the committee’s chairman, fuel economy standards would have been raised long ago, though it should be noted that Republicans could have done the same thing when they controlled the committee from 1994 to 2006.

GM and Ford were also among Dingell’s top seven contributors, each providing the Michigan Democrat with $13,000 during the 2008 election cycle, according to the Center for Responsive Politics.

On the environmental issues, Dingell last year floated the idea of a tax on carbon emissions–an idea that was never expected to go anywhere because lawmakers would be hesitant to vote for tax increases, particularly with an election in sight. Waxman, by contrast, has favored strict cuts on greenhouse gas emissions.

There’s a chance the California Democrat could also remove coal advocate Rep. Rick Boucher, D-Va., from the chairmanship of a subcommittee on energy and air quality. One potential replacement: Rep. Ed Markey, D-Mass., an advocate of tougher climate change restrictions.

In his current role as the House’s top watchdog, Waxman has a reputation for being tough. In recent months, he’s taken to task hedge fund managers, financial regulators and former
Lehman Brothers
Chief Executive Richard Fuld.

He’s likely to apply his skeptical eye toward corporate greed to his new post. That’s a big deal for business, as the Energy and Commerce Committee also deals with food and drug safety, health care and telecommunications legislation.

A quick look at the largest donors to Waxman and Dingell shows that the California congressman is far less connected to business than his Michigan counterpart. Aside from GM and Ford, Dingell’s other top contributors in 2008 were EnergySolutions, a nuclear fuel recycling and disposal company ($29,350),
Comcast
($28,400), private equity firm Linsay, Goldberg and Bessemer ($20,700) and Michigan-based utilities
DTE Energy
($19,750) and
CMS Energy
($17,000).

Waxman’s money ties, at least during the 2008 election, were far more union-oriented. His top contributors included the American Postal Workers Union and the Service Employees International Union (both $10,000), the Operating Engineers Union and the National Beer Wholesalers Association (both $7,500).